2023 with a significant increase in ONDE margin

In 2023, ONDE net profit increased over 3.5 times versus the previous year and amounted to PLN 33.4 million. During the same period, the operating profit increased by 121 percent, to PLN 48.3 million. The Company’s income remained at the similar level as in 2022.

Last year, the leading RES contractor in Poland earned an income of nearly PLN 1,084 million, versus PLN 1,093 million (- 1 percent) in 2022. Therefore, sales of ONDE services did not change significantly, yet the Company earned significantly higher profit on a similar basis. While in 2022, ONDE’s EBIT amounted to PLN 21,9 million, in 2023 it reached PLN 48.3 million. Thus, the Company profitability increased from 2 percent to 4.5 percent. Net profitability rose from 0.7 percent to 3.1 percent, i.e. from PLN 7.2 million to 33.4 million, respectively.

‘In our opinion, the previous year was very successful. The achieved results will allow us to continue our robust development. Over PLN 140 million in cash earned on operations enabled us not only to significantly reduce our debt, but also created a stable financial base for investments in the RES developer segment’, comments Paweł Średniawa, ONDE President.

We would like to remind you that in 2023 ONDE sold its first own photovoltaic farm – 18 MW Cyranka. The Company used funds obtained from its sale to purchase 3 new projects being at the development stage – Jawor and Jelenia Góra I & II. Shortly afterwards the Company started the construction stage for two of them, of the total capacity of ca. 19 MW.

‘We want 2024 to be a period of a significant acceleration for that part of our business. Already the first quarter showed that these plans are based on realistic foundations. During those three months only we sold four projects of the total potential of 60 MW, generating a significant cash flow this way. We also obtained ca. PLN 100 million of external financing in the form of a revolving credit for successive investments. Therefore, we can designate significant amounts for purchases of new projects. It is therefore an excellent moment to hit the accelerator and consolidate our position in the RES market. We are currently interested in several advanced projects, construction of which we could start soon after their acquisition. We are at the stage of intense negotiations’, says Paweł Średniawa.

In the RES contracting sector, at the end of December 2023 ONDE’ portfolio of external orders was worth about PLN 567 million. However, after the balance sheet date, ONDE added over PLN 104 million to its portfolio of RES orders.

The Company also has a favourable view of perspectives for the sector. This opinion results both from legislative changes concerning wind farms construction announced to take place in the middle of the year, as well as funds to be deployed under EU programmes, i.e. the National Recovery Plan or the Cohesion Fund.

‘First funds from NRP are already coming to Poland. As the government has announced, already this year over PLN 22 billion is to be allocated to power generating companies to construct RES projects and energy storage facilities. We estimate that the value of initiated programmes concerning energy transition in which ONDE can participate will even exceed PLN 50 billion by 2030’, reminds Paweł Średniawa. ‘Therefore, in the nearest future we should have our hands full, especially that at the same time we have many projects from our portfolio to implement’, concludes the ONDE President.